Governor Sonko hits back in Sh1 billion bill row

Nairobi Governor Mike Sonko Mbuvi. [File, Standard]

City Hall has agreed to talk with Kenya Power to try to settle a dispute over a Sh1 billion claim in unpaid bills.

This comes barely a week after Kenya Power Acting Managing Director Jared Othieno wrote, seeking payment for the debt.

However, Governor Mike Sonko, in a bid to prevent a switch-off, has claimed that it is Kenya Power that owes the county Sh347 million.

In a letter dated October 1, Sonko explained that the initial claim by Kenya Power was Sh950 million but a court directed that only Sh540 million was to be paid to the power firm.

Sonko explained that Kenya Power owed city hall Sh748 million in accrued way leave rates and Sh68 million in sub-station rent, with the total claim amounting to Sh816 million.

“If we are just trading in, the balance would have been Sh134 million. So far the county has paid you Sh30 million leaving a balance of Sh104 million," Sonko wrote.

Way leave claim

"There was another way leave claim of Sh451 million which is still pending and if this is deducted from your bill then Kenya power owes NCCG Sh347 million,” stated Sonko.

City Hall has invited the Kenya Power management for a meeting on Thursday, October 4, to try to amicably settle the issue.

Kenya Power had last week threatened to plunge City Hall into darkness because of the debt said to have accrued over several months due to failure by the county to make payments despite a prior agreement.

"Nairobi City County government entered into a credit arrangement in June 2018 with KPC spelling out how the county electricity bills are to be settled in order to reduce the outstanding arrears, which at the time stood at Sh990,000,000," Mr Othieno stated in a letter dated September 24.

The official said efforts to engage the county administration on the matter had been futile and the debt had accrued to Sh1.1 billion.

"We wish to request an appointment with you to discuss the best way forward on this matter,” wrote Othieno.  

The letter was also copied to the Energy ministry CS Charles Keter.